Supporting Document (ba752158...)

Item 6
MpCDjHCJt
REPORT
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Meeting Date:
General Plan Element- 
General Plan Goal:
February 10,2026 
Land Use
Create a sense of community.through land uses
ACTION
Adaptive Reuse Text Amendment 
3-TA-2024#3
Request to consider the following:
Adopt Ordinance No. 4701 for the purpose of amending the City of Scottsdale Zoning Ordinance 
(Ordinance No. 455) regarding certain provisions of Article VII., Sections 7.1300. through 7.1304. 
(Multifamily Conversion developments.), and any associated sections to address State of Arizona 
legislation HB2T10 (2025 legislative session) intended to allow for the adaptive reuse or 
redevelopment of existing commercial, office, or mixed-use parcels for multifamily residential use 
as provided in Case 3-TA-2024#3.
key Items for Consideration
• 
Implementation of House Bill 2110 (2025), which requires cities to:
o Allow adaptive reuse or redevelopment of at least 10% of existing commercial, office, or 
mixed-use parcels for multifamily residential use 
o Establish objective standards for eligible projects, without requiring a rezoning, conditional 
use permit, or public hearings
• 
Ordinance changes required to align City’s qualification requirements with House Bill 2110
• 
City Council previously adopted companion updates to Scottsdale Commercial and 
Employment,Hubs and Essential Areas Table in December 2025
• 
Planning Commission recommended approval of proposed text amendment 7-0
Related Policies, References:
City of Scottsdale General Plan 2035, as amended 
Zoning Ordinance
3-TA-2024 (related to HB2297 - approved in 2024) 
3-TA-2024#2 (related to HB2110 - approved in 2025)
STAFF CONTACT
Brad Carr, AlCP, LEED-AP 
City of Scottsdale 
480-312-7713 
bcarr@scottsdaleaz.gov
Action Taken Approved on consent

City Council Report | Adaptive Reuse Text Amendment
APPLICABILITY
Citywide
BACKGROUND
Goal/Purpose of Request
In 2024, the State of Arizona adopted the legislative provisions of House Bill 2297 (HB2297), which 
the City of Scottsdale implemented via 3-TA-2Q24. Those provisions required municipalities to adopt 
standards permitting the conversion of no more than ten percent (10%) of existing commercial, 
office, or mixed-use buildings to multifamily residential use without a public hearing. At that time. 
City staff utilized Maricopa County Assessor Land Use Codes to identify 982 eligible buildings, 
totaling approximately 9.5 million square feet of floor space. After applying exclusionary provisions 
of the legislation and considering General Plan land-use balance, the City implemented the statute 
by allowing 1% (94,972 sq. ft. or 10 buildings, whichever occurs first) to convert to multifamily use 
without a public hearing under the adaptive reuse provisions.
On April 7, 2025, the State of Arizona revised the regulatory framework for adaptive reuse with the 
approval of HB2110 (Attachment 1). This amendment to Section 9-462.10 of Title 9, Chapter 4, 
Article 6.1 of the Arizona Revised Statutes builds upon provisions first established in 2024 through 
HB2297. The amendment shifted the metric from buildings to parcels and increased the minimum 
conversion allowance to at least 10 percent of all existing commercial, office, or mixed-use parcels 
citywide to multifamily development, without a public hearing. In addition, HB2110 included 
expanded language related to the application of average sound levels at prospective parcels in order 
to clarify the eligibility of parcels in the vicinity of an airport. The updated legislation expanded upon 
the State’s intent to promote adaptive reuse of existing commercial, office, and mixed-use parcels 
for multifamily residential development, applying those provisions to a broader range of parcels in 
qualifying municipalities.
On June 24, 2025, City Council approved 3-TA-2024#2 to address updates made to the adaptive 
reuse legislation with HB2110 during the 2025 legislative session. However, on September 26, 2025, 
the City received a letter from State Representative Leo Biasiucci expressing concerns regarding the 
application of the City’s approach to implementing HB 2110. In response to those concerns, the City 
revised its approach to the implementation of qualification exclusions related to properties in the 
vicinity of an airport. The revised approach discontinues the use of mapped Traffic Pattern Airspaces 
(TPAs) for Scottsdale Airport and Phoenix Sky Harbor International Airport and instead relies on a 
sound level criterion to determine eligibility for properties located within the vicinity of an airport. The 
revised approach to the airport exclusion resulted in significantly more properties being eligible for 
the City’s adaptive reuse provisions and required updates to the Scottsdale Commercial and 
Employment Hubs (exclusion parcels) and associated Essential Areas Table. The City Council 
adopted changes to those documents on December 1.2025.
The City desires to make further changes to the Zoning Ordinance to ensure compliant 
implementation of A.R.S. § 9-462.10. These proposed updates will clarify qualification criteria as 
they relate to properties that are located in the vicinity of an airport to ensure consistency with 
HB2110 and recent changes to the Scottsdale Commercial and Employment Hubs (exclusion 
parcels) and associated Essential Areas Table.
Page 2 of 5

City Council Report | Adaptive Reuse Text Amendment
PROPOSED APPROACH
The updates of HB2110 along with the revised implementation of exclusions have the effect of 
increasing the number of parcels that are eligible to utilize the adaptive reuse provisions. Under the 
prior implementation approach, the Traffic Pattern Airspace (TPAs) of both the Scottsdale Airport 
and Phoenix Sky Harbor International Airport covered large portions of the city, particularly areas of 
existing commercial, office, and mixed-use parcels. Under the prior implementation approach, 404 
parcels out of a total of 4,071 commercial parcels met the base statutory criteria. This approach was 
intended to preserve the City’s existing planning and public hearing framework as much as possible.
The City’s revised implementation approach will not include the TPA exclusionary provisions as 
noted above and would thus maintain all 4,071 commercial parcels identified as meeting the base 
statutory criteria. The larger number of potentially eligible parcels also means the City can designate 
a larger number of specific parcels as Commercial or Employment Hubs (Hubs), which are not 
eligible for conversion. 407 parcels were designated as Hubs by the recent City Council action.
Updates to the City’s Zoning Ordinance are required in conjunction with the revised interpretation 
and implementation framework of the airport vicinity disqualification that was adopted by City 
Council as a part of the Hubs update. The proposed changes to the Zoning Ordinance (Attachment 2) 
codify the City’s revised approach to implementation of HB2110, specifically as it relates to parcels 
that are excluded from the adaptive reuse provisions. The revised Zoning Ordinance language 
clarifies the application of a minimum sound threshold that must be met in order to disqualify a 
parcel from application of the adaptive reuse provisions. Under the revised Zoning Ordinance 
provisions, a parcel would be excluded from utilizing the adaptive reuse provisions if it is located in 
the vicinity of an airport and has an average sound level sixty-five (65) decibels or greater. This 
update will generally only exclude those parcels directly adjacent to the Scottsdale Airport.
IMPACT ANALYSIS
Housing Cost
Approval of the proposed zoning text amendment enables will introduce more multifamily residential 
development on properties that have historically been commercial in nature. In conjunction with 
state law, staff has considered the scope of the zoning text amendment, as well as aspects which 
would affect the cost of construction. Staff has not identified any factors that would substantially 
impact the cost to construct housing for sale or for rent.
Community Impact
The full extent of future impacts is currently unknown. HB2110 is intended to facilitate additional 
multifamily residential development on properties that have historically been commercial in nature. 
This may limit future commercial economic development, future employment, and future 
commercial tax revenues as a result. The legislation eliminates the opportunity for public input in the 
land development process by removing the requirement for public hearings on qualifying projects. It 
remains uncertain how many commercial, office, and/or mixed-use property owners will choose to 
pursue these new provisions. Nonetheless, a community’s ability to prepare and respond to change 
through careful review and consideration of proposed land use changes is an indication of its 
resilience and sustainability. Although the impact of this new State Law offers both positive and 
negative changes, the city will look to respond to emerging trends, issues, and opportunities 
associated with the implementation of HB2110.
Page 3 of 5

City Council Report | Adaptive Reuse Text Amendment
Public Participation
Efforts to provide notification are limited by the deadlines for adoption enacted by the State. The City 
of Scottsdale promotes public participation in the development of the built environment and has 
complied with best practices for public outreach associated with this text amendment.
City staff hosted two open house events to discuss proposed changes to the Zoning Ordinance on 
Tuesday, January 6, 2026. A total of 2 people attended the in-person sessions. Overall, attendees 
expressed concern regarding the conversion of commercial properties to multifamily development 
as required by the new State Law. The full citizen involvement report can be found as Attachment 3. 
To this date staff has not received any public input regarding the proposed Zoning Ordinance 
updates.
Policy Implications
This continues a recent trend of pre-emption established by the State in the last number of years. As 
was the case both then and now, the city will continue to support the retention and restoration of 
local decision-making authority and oppose unfunded mandates and preemptive efforts that remove 
the ability to set policy at the local level. Ultimately, however, the city is required to comply with 
state law, including HB2110.
OTHER BOARDS & COMMISSIONS
City Council - Initiation
This update to the Zoning Ordinance was initiated by the City Council on December 1.2025 as a part 
of a larger effort to make updates to the Adaptive Reuse provisions to conform with HB2110.
Planning Commission - Recommendation
On January 14. 2026. the Planning Commission voted unanimously (7-0) through the Consent 
Agenda to recommend the City Council adopt Ordinance No. 4701.
Staff Recommendation to Planning Commission
Staff recommended that the Planning Commission find that the proposed text amendment is 
consistent and conforms with the adopted General Plan and make a recommendation to City 
Council for adoption of Ordinance No. 4701.
STAFF RECOMMENDATION
Recommended Approach:
Adopt Ordinance No. 4701 for the purpose of amending the City of Scottsdale Zoning Ordinance 
(Ordinance No. 455) regarding certain provisions of Article VII., Sections 7.1300. through 7.1304. 
(Multifamily Conversion developments.), and any associated sections for the purpose of addressing 
State of Arizona legislation HB2110 (2025 legislative session) intended to allow for the adaptive 
reuse or redevelopment of existing commercial, office, or mixed-use parcels for multifamily 
residential use as provided in Case 3-TA-2024#3.
RESPONSIBLE DEPARTMENT
Planning and Development Services
Current Planning Services
Page 4 of 5

City Council Report | Adaptive Reuse Text Amendment
APPROVED BY
Brad Carr, AlCP, LEED-AP, Report Author
Tim Curtis, AlCP, Current Planning Director 
Planning Commission Liaison
Phone: 480-312-4210 Email: tcurtis@scottsdaleaz.gov
Erin Perreault, AlCP, Senior Director 
Planning & Development Services
Phone: 480-312-7093 Email: eperreault@scottsdaleaz.gov
1/23/2025
Date
1/23/2026
Date
01/26/2026
Date
ATTACHMENTS
1. 2025 Arizona Fiftv-Seventh Legislature - House Bill 2110 Legislative Text
2. Ordinance No. 4701
a. Exhibit A: Adaptive Reuse Text Amendment - 3-TA-2024#3
3. Citizen Involvement Report
Page 5 of 5

ATTACHMENT 1
House Engrossed
development; adaptive reuse; rezoning; prohibition
State of Arizona 
House of Representatives 
Fifty-seventh Legislature 
First Regular Session 
2025
CHAPTER 41
HOUSE BILL 2110
AN ACT
AMENDING SECTION 9-462.10, ARIZONA REVISED STATUTES; RELATING TO MUNICIPAL 
ZONING.
(TEXT OF BILL BEGINS ON NEXT PAGE)
- i -

H.B. 2110
1 Be it enacted by the Legislature of the State of Arizona:
2 
Section 1. Section 9-462.10, Arizona Revised Statutes, is amended
3 to read:
Commercial buildinqs: 
multi family residential
9-462.10.
development: 
adaptive reuse: prohibition
on
rezoninq
or
municipal review: 
objective
standards: applicability: definitions
befure January—i-.—2^ WITHIN NINETY
4
5
6
7
8 
A. On 01—befure January—i-,—2^ WITHIN NINETY DAYS AFTER THE
9 EFFECTIVE DATE OF THIS AMENDMENT TO THIS SECTION, the governing body of a
10 municipality with a 
population of one hundred fifty thousand or more
11 persons shall establish objective standards to allow multifamily
12 residential development or adaptive reuse ufi nuL ikiui c Lliaii Lcii p’erx’errt Q"f
13 ttre—LoLdl OF existing commercial, office or mixed use buildings PARCELS
14 within the municipality without requiring a conditional use permit, a
15 planned unit development or rezoning application or any other application
16 that would require 
a public 
hearing. The governing body of 
the
17 municipality may mod i fy tfre pci\,eh Lage erf ex i i L i iig uuiniiie i u i a 1 , u f f i u.e or
18 III i xed
Uoc
buildiriy^s wit I I I n
tlic
TTTUIT I c i pd 1 i tjf
a V a Tliable—fUf
IIIU 1 L i fa III I 1 y
19 icbldiiiliLicil develupliieiiL ui adaptive T’eTTS'e c v c i Lc 11 y e d I's SHALL:
20 
1. ALLOW FOR MULTIFAMILY RESIDENTIAL DEVELOPMENT OR ADAPTIVE REUSE
21 OF AT LEAST TEN PERCENT OF THE EXISTING COMMERCIAL, OFFICE OR MIXED USE
22 PARCELS. FOR THE PURPOSES OF DETERMINING THE MINIMUM PERCENTAGE OF
23 PARCELS ELIGIBLE FOR MULTIFAMILY RESIDENTIAL DEVELOPMENT OR ADAPTIVE
24 REUSE. THE GOVERNING BODY OF THE MUNICIPALITY MAY ANALYZE THE COMMERCIAL,
25 OFFICE AND MIXED USE PARCELS EVERY TEN YEARS.
26 
2. 
NOT 
DESIGNATE INDIVIDUAL PARCELS 
THAT 
ARE 
ELIGIBLE 
FOR
27 MULTIFAMILY RESIDENTIAL DEVELOPMENT OR ADAPTIVE REUSE.
28 
3. 
NOT 
EXCLUDE COMMERCIAL. OFFICE OR MIXED USE 
PARCELS 
FROM
29 MULTIFAMILY RESIDENTIAL DEVELOPMENT OR ADAPTIVE REUSE OTHER THAN AS
30 ALLOWED BY SUBSECTIONS B AND G OF THIS SECTION OR IF TEN PERCENT OF THE
31 PARCELS HAVE ALREADY BEEN DEVELOPED OR ADAPTED FOR REUSE.
32 
4. 
NOT 
EXCLUDE COMMERCIAL. OFFICE OR MIXED USE 
PARCELS 
FROM
33 MULTIFAMILY RESIDENTIAL DEVELOPMENT OR ADAPTIVE REUSE IF THE AVERAGE SOUND
34 LEVEL AT THE PARCEL IS BELOW SIXTY-FIVE DECIBELS.
35 
B. A municipality may designate commercial or employment hubs and
36 other essential commercial or employment use areas where existing
37 commercial, office, employment or mixed use buildings PARCELS are excluded
38 from the provisions of this section. The designations made pursuant to
39 this subsection may not exceed ten percent of the existing commercial,
40 office, employment or mixed use bui1diiigs PARCELS within the municipality.
41 A municipality may modify the commercial or employment hubs that are
42 excluded from the provisions of this section once every ten years.
43 
C. For multifamily residential development or adaptive reuse, the
44 objective standards established by a municipality shall require but may
45 noL I equi I e iiiui e Lliaii ONLY the following:
- 1 -

H.B. 2110
1 
1. A municipal site plan review and approval process requirement.
2 including site plan review by any utility provider impacted by the
3 proposed development.
4 
2. Adequate public sewer and water service for the entire proposed
5 development.
6 
3. Compliance with all applicable building CODES and fire codes.
7 
4. 
That the existing buildings are economically or functionally
8 obsolete.
9 
5. That the existing buildings are located on a parcel or parcels
10 that are at least one acre in size but not more than twenty acres in size.
11 
6. 
A set-aside of ten percent of the total dwelling units for
12 either moderate-income housing or low-income housing or any combination of
13 the two for at least twenty years after the initial occupation of the
14 proposed development. The developer may set aside more than ten percent
15 at the developer's sole discretion.
16 
D. 
The objective standards may not contain parking space
17 requirements that exceed the parking requirements that apply to
18 multifamily residential buildings or adaptive reuse buildings under the
19 existing zoning code unless the proposed multifamily residential
20 development or adaptive reuse also qualifies as a mixed use development.
21 
E. A municipality tiray SHALL not withhold a demolition permit if a
22 multifamily residential development meets the requirements of this
23 section. For a multifamily residential development, all of the following
24 apply:
25 
1. The demolition of all or a portion of the existing commercial.
26 office or mixed use buildings shall be allowed.
27 
2. Setback requirements may not exceed what is required in the
28 existing zoning code for multifamily residential buildings. INCLUDING
29 MIXED USE BUILDINGS WITH THE MAJORITY OF FLOOR AREA DEDICATED TO
30 RESIDENTIAL USES.
31 
3. Notwithstanding section 9-462.01. subsection C. the maximum
32 height and density shall be equal to the highest allowable multifamily
33 height and density for a multifamily zoning district OR A ZONING DISTRICT
34 THAT ALLOWS RESIDENTIAL DEVELOPMENT. INCLUDING COMMERCIAL DISTRICTS THAT
35 ALLOW FOR RESIDENTIAL DEVELOPMENT. WHICHEVER HEIGHT AND DENSITY IS GREATER
36 in the municipality within one mile of the bui1ding PARCEL to be
37 redeveloped. If there is no multifamily zoning district in the
38 municipality within one mile of the buiIding PARCEL to be redeveloped, the
39 maximum height and density shall be equivalent to the next closest
40 multifamily zoning district OR A ZONING DISTRICT THAT ALLOWS RESIDENTIAL
41 DEVELOPMENT. INCLUDING COMMERCIAL ZONING DISTRICTS THAT ALLOW FOR
42 RESIDENTIAL DEVELOPMENT WHICHEVER HEIGHT AND DENSITY IS GREATER.
43 
4. The allowable height may not exceed five stories and a
44 municipality may limit the height to two stories in the areas of a
45 MULTIFAMILY RESIDENTIAL DEVELOPMENT site DIRECTLY ADJACENT TO AND within
- 2 -

H.B. 2110
1 one hundred feet of single-family residential zones. Hultiramily
2 I'cSlJeiiLldl dcvcl 0[>lllcll L Llia L TS CuHS L i tn_ Led jjui ^uaii L tO ttTTS S’G'Ct 1 011 doeS
3 iiu L gudl I ai be i w i Lli i ti orre iti i 1 c of Llie building being t cdcvd u^cd or
4 the neAl cl uses I multi family-fattll ding THE MUNICIPALITY SHALL ALLOW FOR
5 GREATER HEIGHT IN THE REMAINDER OF THE SITE.
6 
5. MULTIFAMILY RESIDENTIAL DEVELOPMENT THAT IS CONSTRUCTED PURSUANT
7 TO THIS SECTION DOES NOT QUALIFY AS BEING WITHIN ONE MILE OF THE PARCEL
8 BEING REDEVELOPED OR THE NEXT CLOSEST MULTIFAMILY PARCEL.
9 
F. A municipality mcry SHALL not withhold a demolition permit if an
10 adaptive reuse 
project meets the 
requirements of this section. For
11 adaptive reuse, all of the following apply:
12 
1. 
The demolition of a portion of the existing commercial, office
13 or mixed use building or buildings shall be allowed.
14 
2. 
The setback requirements for the proposed use shall apply. If
15 the minimum setback requirement that 
applies to the existing commercial,
16 office or mixed use building is less than the minimum setback requirement
17 that applies to the proposed MULTIFAMILY use, the existing SETBACK SHALL
18 REMAIN AND THE 
building shall be considered nonconforming for setback
19 purposes unless easements, including public utility easements, are located
20 within setback areas.
21 
3. 
If the maximum allowable height that applies to the existing
22 commercial, office or mixed use building exceeds the maximum allowable
23 height for the proposed use, the existing height irray SHALL remain and THE
24 BUILDING shall be considered nonconforming for height purposes and the
25 existing building may be expanded to the maximum allowable density for tfre
26 piupuseU MULTIFAMILY use. Any rooftop appurtenances shall be included
27 within the height exemption.
28 
G. 
This section does not apply to any of the following:
29 
1. 
Land in an area that is designated as a district of historical
30 significance pursuant to section 9-462.01. subsection A, paragraph 10.
31 
2. 
Land 
in an area that is designated historic by 
a local
32 government.
33 
3. Land in an area that is designated as historic on the national
34 register of historic places.
35 
4. Land in the territory in the vicinity of a military airport or
36 ancillary military facility as defined in section 28-8461.
37 
5. 
Land 
in the territory in the vicinity of a federal 
aviation
38 administration commercially licensed airport or a general aviation or
39 public airport as defined in section 28-8486.
40 
6. Land in a municipality that is located on tribal land.
41 
H. 
For the purposes of this section:
42 
1. "Adaptive reuse" means converting an existing building from the
43 use for which it was constructed to a new MULTIFAMILY use by maintaining
44 some or all of the elements of the building.
- 3 -

H.B. 2110
1 
2. "Building code" 
has the same meaning prescribed 
in section
2 9-1301.
3 
3. "Economically or 
functionally obsolete" means 
the commercial,
4 office or mixed use building PARCEL is in a state of disrepair or has AT
5 LEAST a fifty percent vacancy in the total leasable square footage.
6 
4. "Low-income housing" means housing-:—
7 
irdrf for a person or persons whose household income does not exceed
8 eighty percent of the area median income.
9 
(b) 
Ful wlliL.ll Llle ui.i.Li^aiiL pay a tiu L IIIOIc Llidii LIriiLy petuciiL uf Llie
10 
uucupaiiL':> y I uSS i iiuuiiie fu f L ii e ULuUpo h L ' ^ i cU L 0 k' lilu t Lga gc , ETS ds te f in I lied
11 bj Llie A( I /ulla defja i Liiieii L crf lluUi i iig d lid dd j Ui Led fui' 
ilOUSel'IOlU SI Ze bdStd
12 uii Llie Uni Led SLoLc^ dcpai LllicuL uf liuusing and uibaii dcVdupiiit^riL.
13 
5. 
"Moderate-income 
housing" means housing-r-
14 
-(-Ht for a person or 
persons whose household income does 
not exceed
15 one hundred twenty percent of the area median income.
16 
(b) 
F u r wli i L-li Llie occTTpaTrL pay s nrrL nTcrre Llidii Lliii Lj pd\.diL of Llie
17 ui.i.updll L ' S g I 
^ nreUTTTe fu I Liie Ucv.upa II L * i I t:ii L OT hiul Lgdge , a-S dc Lci in I Mcd
18 [jj Liic Ai I z.uiia depa f Liiicti L 0"f ituu:>ing dnd ad J u:> Led F ui 
liuu:>diul d 5 1 /e ba'S ed
19 ull LIlc UiiiLtrd SLoLc^ dc^oiLiiidlL uf livjucailig dlld uibaii dcvduphiciiL.
20 
6. 
"Multifamily residential development" means a building or
21 buildings that are designed and used for residential purposes and that
22 contain more than one apartment or dwelling unit for sale or for rent but
23 that are not adaptive reuse.
24 
7. "Nonconforming" means structures that have received building and
25 zoning OCCUPANCY permits under the regulations in place at the time of
26 construction.
27 
8. 
"Rooftop appurtenances":
28 
(a) 
Means rooftop structures that principally house air
29 conditioning equipment, solar panels, utilities, elevators, other energy
30 production facilities and other nonhabitable structures.
31 
(b) Includes open space features, swimming pools, space for use by
32 residents and landscaping.
33 
(c) 
Does not include enclosed areas, spires, bell towers, domes.
34 cupolas, pediments, obelisks or monuments.
35 
Sec. 2. Retroactivitv
36 
Section 9-462.10, Arizona Revised Statutes, as amended by this act,
37 applies retroactively to from and after December 31, 2024.
38 
Sec. 3. Emergency
39 
This act is an emergency measure that is necessary to preserve the
40 public peace, health or safety and is operative immediately as provided by
41 law.
APPROVED BY THE GOVERNOR APRIL 7. 2025.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 7. 2025.
- 4 -

ATTACHMENT 2
ORDINANCE NO. 4701
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SCOTTSDALE, 
MARICOPA COUNTY, ARIZONA, AMENDING THE CITY OF SCOTTSDALE 
ZONING ORDINANCE (ORDINANCE NO. 455) REGARDING CERTAIN 
PROVISIONS OF ARTICLE VII., SECTIONS 7.1300. THROUGH 7.1304. 
(MULTIFAMILY CONVERSION DEVELOPMENTS.), AND ANY ASSOCIATED 
SECTIONS FOR THE PURPOSE OF ADDRESSING STATE OF ARIZONA 
LEGISLATION OF HB2110 INTENDED TO ALLOW FOR THE ADAPTIVE 
REUSE OR REDEVELOPMENT OF EXISTING COMMERCIAL, OFFICE, OR 
MIXED-USE PARCELS FOR MULTIFAMILY RESIDENTIAL USE.
WHEREAS, the City wishes to amend the Zoning Ordinance of the City of Scottsdaie, 
Ordinance No. 455, regarding certain provisions of Articie VII. Sections 7.1300. through 7.1304. 
(Multifamiiy Conversion developments.), and any associated sections for the purpose of 
addressing recent State of Arizona iegislation of HB2110 intended to allow for the adaptive 
reuse or redeveiopment of existing commercial, office, or mixed-use parcels for multifamily 
residential use; and
WHEREAS, the Arizona Legislature adopted House Bill (HB) 2110, as an emergency 
measure, necessary to preserve the public peace, health or safety and is operative immediately; 
and
WHEREAS, HB 2110 applies retroactively to, from, and after December 31, 2024; and
WHEREAS, HB2110 codified certain statutory provisions, including Arizona Revised 
Statutes (A.RS.) § 9-462.10(A), which provides, in part, that the governing body of a city or town 
with a population of 150,000 or more must establish objective standards, to allow "multifamily 
residential development" or "adaptive reuse", as those terms are defined in the statute, on at 
least ten percent (10%) of the total existing commercial, office or mixed-use parcels within its 
jurisdictional boundaries, subject to certain requirements and limitations; and
WHEREAS, HB2110 codified certain other statutory provisions, including A.RS. § 9- 
462.10.(B), which provides, in part, that a municipality may designate not more than ten percent 
(10%) of existing commercial or employment hubs and other essential commercial or 
employment use areas where existing commercial, office, employment or mixed-use parcels are 
excluded from the provisions of A.RS. § 9-462.10; and
WHEREAS, HB2110 codified certain other statutory provisions, including A.RS. §§ 9- 
462.10(C) through 9-462.10(G) and associated subsections, which provides, in part, various 
requirements, exceptions, and limitations relating to "multifamily residential development" or 
"adaptive reuse", as those terms are defined in the statute; and
WHEREAS, this Ordinance is being adopted by the City Council to comply with the new 
statutory requirements and regulations established pursuant to HB2110; and
WHEREAS, the City Council has considered the probable impact of this Ordinance on 
the cost to "construct housing for sale or rent; and
18806906
Ordinance No. 4701 
Page 1 of 2

WHEREAS, the Planning Commission held a public hearing on January 14, 2026 and 
considered a proposed text amendment to the Zoning Ordinance of the City of Scottsdale in 
Case No. 3-TA-2024#3; and
WHEREAS, the City Council has determined that the proposed amendment to the 
Zoning Ordinance of the City of Scottsdale is in conformance with the General Plan, as 
amended.
BE IT ORDAINED by the Council of the City of Scottsdale as follows:
Section 1. That the Zoning Ordinance of the City of Scottsdale, Ordinance No. 455, is 
hereby amended as specified in that certain document entitled "Adaptive Reuse Text 
Amendment - 3-TA-2024#3," declared to be a public record of the City of Scottsdale, attached 
as Exhibit A, and hereby referred to, adopted, and made a part hereof as if fully set out in this 
Ordinance. New text is represented by grey shading and deleted text represented by 
strikethrough.
Section 2. If any section, subsection, sentence, clause, phrase or portion of this 
Ordinance, or any part of the Scottsdale Revised Code adopted herein, is for any reason held to 
be invalid or unconstitutional by the decision of any court of competent jurisdiction, such 
decision shall not affect the validity of the remaining portions thereof.
PASSED AND ADOPTED by the Council of the City of Scottsdale, Maricopa County, 
Arizona this______ day of______________, 2026.
ATTEST:
By:.
Ben Lane 
City Clerk
CITY OF SCOTTSDALE, an Arizona 
municipal corporation
By:__________________________
Lisa Borowsky 
Mayor
APPROVED AS TO FORM: 
OFFICE OF THE CITY ATTORNEY
Its E. Santaella, Acting City Attorney 
By: Joe Padilla, Deputy City Attorney
18806906
Ordinance No. 4701 
Page 2 of 2

ADAPTIVE REUSE TEXT AMENDMENT
3-TA-2024#3
That the Zoning Ordinance of the City of Scottsdale, ARTICLE VII. - GENERAL 
PROVISIONS, Section 7.1300 through Section 7.1304. are amended as follows with all new 
language depicted in grey shading and deleted language in strike-through:
Sec. 7.1300. Multifamily Conversion developments.
Sec. 7.1301. Purpose.
A. These provisions describe the qualifications, application requirements, and property 
development standards for a development application for a Multifamily Conversion 
development. The qualifications, requirements, and regulations in these provisions are in 
addition to the other codes and requirements of the City of Scottsdale.
Sec. 7.1302. Qualifications.
A. A Multifamily Conversion development shall only be established upon all of the following 
requirements being met:
1. Location.
a. 
The Multifamily Conversion development shall be located on a parcel or parcels 
that have an existing commercial, mixed-use, or office building or buildings and 
that have received a Certificate of Occupancy on or before December 31, 2024, 
and
b. 
The Multifamily Conversion development shall be located on a parcel or parcels 
that were created pursuant to Chapter 48 of the City of Scottsdale Revised Code 
on or before December 31, 2024 and are a minimum of one (1) net acre in size, 
but not more than twenty (20) net acres in size, and
c. 
The Multifamily Conversion development shall not be located in any of the following 
areas:
i. 
An area designated as a Commercial or Employment Hub or Essential 
Commercial or Employment Use Area on the Scottsdale Commercial and 
Employment Hubs and Essential Areas Table on file with the Planning 
Department, or
ii. 
An area designated as a district of historical significance pursuant to A.R.S. § 
9-462.01.A.10., or
iii. 
An area designated as historic by the City of Scottsdale or on the national 
register of historic places, or
iv. 
Land, which by whole or part, is located in the territory in the vicinity of a 
military airport or ancillary military facility as defined in A.R.S. § 28-8461, or
V. Land, which by whole or part, is located in the territory in the vicinity of a 
federal aviation administration commercially licensed airport or a general
Ordinance No. 4701 
Exhibit A 
Page 1 of 5

aviation or public airport as defined in A.R.S. § 28-8486r-©F, that has an 
average sound level of sixty-five (65) decibels or higher.’
Vtr-
d.
Land, which by \whole or part, has an average sound level of 65 decibels or 
higher measured along the lot line abutting the primary street frontage.
For Multifamily Conversion developments with multiple parcels, such parcels must 
be contiguous and under single ownership or control to meet the minimum net 
acreage size requirements. Adjacent right-of-way and alleys shall not be 
considered as contributing to the contiguity of parcels.
2. 
Water and sewer infrastructure.
a. The Multifamily Conversion development shall demonstrate adequate public water 
and sewer infrastructure service for the entire proposed development, as 
administered by the City of Scottsdale.
3. 
Building and fire codes.
a. The Multifamily Conversion development shall demonstrate compliance with all 
applicable building code and fire code requirements, as adopted by the City of 
Scottsdale.
4. 
Economically or functionally obsolete buildings.
a. The Multifamily Conversion development shall demonstrate that the existing 
building or buildings iocated on the parcel or parcels of the development have 
beenare economically or functionally obsolete, to the satisfaction of the Zoning 
Administrator or designee.
5. 
Moderate-income housing or low-income housing.
a. The Multifamily Conversion development project shall allocate a minimum of ten 
(10) percent of the total dwelling units of the Multifamiiy Conversion development 
as either moderate-income housing or low-income housing, or any combination 
thereof, for at least twenty (20) years after the initial occupation of the proposed 
development project, in a form satisfactory to the City Attorney or designee.
6. 
Maximum quantity of conversion parcels.
a. The Multifamily Conversion development shall be located on a parcel that, 
cumulatively with any existing and approved Multifamily Conversion development, 
does not exceed the Scottsdale Total Allocated Multifamily Conversion 
Development Projects Allotment on file with the Pianning Department, and as 
administered by the Zoning Administrator or designee. Fulfillment of the Scottsdale 
Total Allocated Multifamily Conversion Development Projects Allotment shall be 
determined by:
i. 
The number of parcels redeveloped for Multifamily Conversion under this 
Ordinance; in cumulative with
ii. 
The number of parcels with approved building permits for Multifamily 
Conversion under this Ordinance but not yet completed; in cumulative with
Ordinance No. 4701 
Exhibit A 
Page 2 of 5

iii. The number of parcels with submitted construction documents for development 
of a Multifamily Conversion under this Ordinance but not yet permitted.
Sec. 7.1303. Application requirements.
A. 
Prior to issuance of any permit for a Multifamily Conversion, the property owner shall submit 
for review of a development application, subject to the requirements of Sec. 1.300. The 
Zoning Administrator or designee shall review a development application for a qualified 
Multifamily Conversion development. The Zoning Administrator or designee shall have the 
authority to approve, approve with stipulations, or deny a development application for a 
qualified Multifamily Conversion development and the decision shall not be appealable. The 
property owner must receive approval of the development application before any permit for 
a Multifamily Conversion development will be issued.
B. 
In addition to the standard requirements of a development application, any development 
application for a Multifamily Conversion development shall demonstrate the following 
application requirements, to the satisfaction of the Zoning Administrator or designee:
1. 
A site plan in conformance with City of Scottsdale rules, regulations, and guidelines for 
development. The site plan shall also demonstrate, amongst other requirements, that 
the proposed development is located on a parcel or parcels that are a minimum of one 
(1) net acre in size, but not more than twenty (20) net acres in size, and that the 
Scottsdale Total Allocated Multifamily Conversion Development Projects Allotment has 
not, or will not be, exceeded by the proposed development.
2. 
A site plan review and approval by all applicable utility providers impacted by the 
proposed development.
3. 
Adequate existing public water supply and service, and sewer capacity and service for 
the entire proposed development, as administered by the City of Scottsdale.
4. 
Compliance with all applicable building code and fire code requirements, as adopted by 
the City of Scottsdale.
5. 
That the proposed Multifamily Conversion development is located on a parcel or parcels 
that have an existing commercial, mixed-use, or office building or buildings that received 
a Certificate of Occupancy on or before December 31, 2024.
6. 
That the existing building or buildings located on the parcel or parcels of the proposed 
Multifamily Conversion development have beenare economically or functionally 
obsolete. for at least six (6) continuous months.
7. 
That the proposed Multifamily Conversion development will allocate a minimum of ten 
(10) percent of the total dwelling units of the Multifamily Conversion development as 
either moderate-income housing or low-income housing, or any combination thereof, for 
at least twenty (20) years after the initial occupation of the proposed development, in a 
form satisfactory to the Zoning Administrator and City Attorney or designees. The final 
form of documentation of this requirement shall be recorded by the City prior to issuance 
of any building permit.
Ordinance No. 4701 
Exhibit A 
Page 3 of 5

Sec. 7.1304. Property Development Standards.
A. A Multifamily Conversion development shall be subject to the property development 
standards of the zoning district for which the proposed development is located within, except 
as modified by this section. If there is a conflict between the property development standards 
of the underlying zoning district and the property development standards outlined in this 
section, the property development standards of this section shall control.
1. 
Density.
a. Multifamily Conversion.
i. 
The maximum multifamily residential density for a Multifamily Conversion 
development shall be equal to the highest allowable multifamily residential 
density of a multifamily residential zoning district shown in Table 4.100.A., or 
the portion of a Planned Community (P-C) with an underlying zoning district 
comparable to a multifamily residential district shown in Table 4.100.A., or a 
zoning district that permits residential development as an allowed land use, 
whichever density is greater, within one (1) mile of the subject Multifamily 
Conversion development. If there is no multifamily residential zoning district 
within one (1) mile of the subject Multifamily Conversion development, the 
maximum multifamily residential density for the subject Multifamily 
Conversion development shall be equivalent to the next closest multifamily 
residential zoning district by distance or the next closest zoning district in 
proximity to the subject Multifamily Conversion development that permits 
residential development as an allowed land use, whichever density is greater.
ii. 
A Multifamily Conversion development constructed pursuant to the provisions 
of this section does not qualify as being within one (1) mile of a subsequent 
Multifamily Conversion development, or as the next closest multifamily 
residential district.
2. 
Building height.
a. Multifamily Conversion.
i. 
The maximum building height for a Multifamily Conversion development 
located directly adjacent to and within one hundred (100) feet of a Single­
family Residential District shall not exceed the lesser of two stories or thirty 
(30) feet (inclusive of rooftop appurtenances). This building height limitation 
applies only to buildings of the Multifamily Conversion development that are 
located within one hundred (100) feet of a Single-family Residential District.
ii. 
The maximum building height for a Multifamily Conversion development that 
is not located within one hundred (100) feet of a Single-family Residential 
District shall not exceed the lesser of five (5) stories or sixty (60) feet, or the 
highest allowable multifamily residential building height (exclusive of rooftop 
appurtenances) for a multifamily residential zoning district shown in Table 
4.100.A., or the portion of a Planned Community (P-C) with an underlying 
zoning district comparable to a multifamily residential district shown in Table 
4.100.A., or a zoning district that permits residential development as an 
allowed land use, whichever building height is greater, within one (1) mile of
Ordinance No. 4701 
Exhibit A 
Page 4 of 5

the subject Multifamily Conversion development. If there is no multifamily 
residential zoning district within one (1) mile of the subject Multifamily 
Conversion development, the maximum building height for the subject 
Multifamily Conversion development shall be equivalent to the next closest 
multifamily residential zoning district by distance or the next closest zoning 
district in proximity to the subject Multifamily Conversion development that 
permits residential development as an allowed land use, whichever building 
height is greater.
iii. Any Multifamily Conversion development constructed pursuant to the 
provisions of this section does not qualify as being within one (1) mile of a 
subsequent Multifamily Conversion development, or as the next closest 
multifamily residential district.
3. 
Building setbacks.
a. Multifamily Conversion.
i. The minimum building setback for a Multifamily Conversion development shall 
be equivalent to the building setback requirements of the Townhouse 
Residential (R-4) zoning district.
4. 
Private outdoor living space. 
a. Multifamily Conversion.
i. 
All dwelling units shall Include private outdoor living space located directly 
adjacent to the dwelling unit.
ii. 
Each private outdoor living space shall be at least six (6) feet deep and sixty 
(60) square feet in area.
Ordinance No. 4701 
Exhibit A 
Page 5 of 5

ATTACHMENTS
3-TA-2024#3 - Adaptive Reuse 
Citizen Invoivement Report
Introduction
In response to new Arizona Laws passed by the Arizona State Legislature in April 2025, 
Scottsdale City Council initiated the following text amendment at their regular meeting on 
December 1, 2025, in order to comply with State Law:
3-TA-2024#3, Adaptive Reuse Text Amendment. Request by City of Scottsdale to amend 
the City of Scottsdale Zoning Ordinance (Ordinance No. 455) for the purpose of 
addressing HB2110.
Consequently, as required by the city's Zoning Code, staff conducted two open houses where 
the public was invited to review, and provide public comment on, these amendments.
Summary of Open Houses
Two open house events were held to discuss the proposed changes to the Zoning Code. Both 
events were advertised through an 1/8-page ad in the Arizona Republic newspaper, the 
Scottsdale P&Z Link e-newsletter, and postcards sent to the City's interested parties list.
Residents and stakeholders were encouraged to review case information online, which 
includes:
• Review of the Chaptered Version of the State Law (HB2110)
The City's draft Zoning Code text amendment 
An option to submit public comments 
Planning Commission and City Council hearing schedules
The first open house took place on Tuesday, January 6, 2026, at One Civic Center - Community 
Development Conference Rooms 1 & 2 from 10:00 am -11:30 am, and the second on Tuesday, 
January 6, 2026, at One Civic Center - Community Development Conference Rooms 1 & 2 from 
4:00 pm - 5:30 pm. A total of two (2) people attended the in-person sessions.
The same material was presented at both sessions {Enclosure 1), covering:
Requirements of the new State bill, and
How the proposed Zoning Code text amendment addresses the changes, and 
Efforts by the City of Scottsdale to mitigate any potential adverse impacts
January 7, 2026

Overall, attendees expressed concern regarding the conversion of commercial properties to 
multifamily development as required the new State Law. No written comments were 
submitted.
Enclosures:
1. 
3-TA-2024#3 Information Boards Presented at Open House
2. 
Open House Sign-in Sheets
January 7, 2026

CITYOF^
SCOnSDALE
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Adaptive Reuse 
Zoning Code Amendment
State Law Requirements & 
City Compliance
HB2110 3-TA-2024#3
1 I 3-TA-2024#3
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Background and Purpose
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State of Arizona grants cities and towns with local authority the ability to 
set zoning/land use regulations subject to State Law
HB 2110 was passed by the State Legislature and signed by the Governor 
in April 2025 to allow adaptive reuse of parcels with existing connnnercial, 
office and mixed-use buildings to be redeveloped as multi-family housing
The City must comply with State Law
Update methodology for determining adaptive reuse/multifamily 
conversion parcel eligibility
Zoning Ordinance updates are necessary to align with recently adopted 
updates to Commercial & Employment Hubs and Essential Areas Table 
(adopted by City Council on 12/1/2025)
2 I 3-TA-2024#3

Why an update is needed
HB2110 (2025) revised adaptive 
reuse/multifamily conversion requirennents
City will no longer use Traffic Pattern 
Airspace boundaries for deternnining parcel 
eligibility/ineligibility of adaptive 
reuse/multifamily conversion
Updated methodology ensures statutory 
alignment
Fully replaces prior approach presented in 
2024-2025
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Land in the territory in the vicinity of 
A a Federal Aviotion Adminbtrafion 
commercialty Icensed oirport
^ Scottsdale Airport 
™ 60 DNL Noise Contour
Scottsdale McDowell 
Sonoran Preserve

Updated Statutory Requirement
4,071 commercial, office, and mixed- 
use parcels citywide
(previously 404 parcels with TPA)
407 parcels (10%) now eligible for 
adaptive reuse/multifamily conversion
(previously 40 parcels with TPAs)
407 parcel (10%) designated as Hubs 
and ineligible for adaptive 
reuse/multifamily conversion
(previously 40 parcels with TPAs)
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Commerciol. Office, or Mixed-Use site 
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Commerciol/Employment Hub,
Exempt Irom Adoptive Reuse (407 Pore*
Scottsdale Airport 65 Day Night Level (D 
Noise Contour
Old Town Scotlsdale Character Area 
(^3 1 -Mite Butter of Type 3 Development 
Scottsdale McDowell Sonoran Preserve

Hub Selection Methodology
Identification of Ineligible Parcels
Citywide, uniform, transparent criteria:
• Neighborhood Hubs Focus
• Existing Designated Hubs (40 parcels)
• New Hubs (23 additional parcels)
• Key Areas In/Around Old Town
• Type 1 Areas (90 parcels)
• Within Old Town Couplets (141 parcels)
• Larger Old Town parcels (39 parcels)
• Within 1 -mile of Old Town (74 parcels)
407 total Hub parcels designated as ineligible 
for adaptive reuse/multifamily conversion
Predictable and impartial implementation
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Exempt from Adoptive Reuse (407 Pare*
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Scottsdale Airport 65 Day Night Level (D 
Noise Contour
■I Old Town Scottsdale Character Area 
(^3) '-Mile Butler of Type 3 Development 
Scottsdale McDowell Sonoron Preserve

Next Steps
3-TA-2024#3: Adaptive Reuse
Public outreach and open houses
When: 
Tuesday, January 6,2026
Time: 
10:00 AM to 11:30 AM
Location: One Civic Center
Community Dev. Conf. Rooms 1 & 2 
7447 E. Indian School Road, Ste 105 
Scottsdale, AZ 85251
When: 
Tuesday, January 6,2026
Time: 
4:00 PM to 5:30 PM
Location: One Civic Center
Community Dev. Conf. Rooms 1 & 2 
7447 E. Indian School Road, Ste 105 
Scottsdale, AZ 85251
Planning Commission
• Recommendation hearing (January 14,2026)
City Council
• Action Hearing (Tentatively February 10, 2026)
Adaptive Reuse
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Scan, snap, saw, and share
6 1 3-TA-2024#3

CITYOF^
SCOTTSDALE
Adaptive Reuse Text Amendment
3-TA-2024#3
Open House Sign-In Sheets for 10:00 AM January 6, 2026
Name
Address
Phone
E-mail
Name
ss
Phone
Address
Name
Phone
E-mail
Name
Phone
Name
Phone
E-mail
Name
Address
Phone
E-mail
Name
Address
Phone
E-mail
Please note that the City of Scottsdale receives requests from citizens to review comment cards and sign-in sheets 
and the city is obligated to release any information on the cards/sheets that is considered a public record.
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CITYOF-^.
SCOnSDALE
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Adaptive Reuse Text Amendment
3-TA-2024#3
Open House Sign-In Sheets for 4:00 PM January 6,2026
Name
r
Phone
Nanifc^
Phone
/
Name
Phone
Name
Phone
Name
Phone
Name
Phone
Name
Phone
Address
A/
E-mail
Address
E-mail
Address
E-mail
Address
E-mail
Address
E-mail
Address
E-mail
Address
E-mail
Please note that the City of Scottsdale receives requests from citizens to review comment cards and sign-in sheets 
and the city is obligated to release any information on the cards/sheets that is considered a public record.